Exhibit 99.1
General Moly Announces Entry into Letter of Intent to Sell the
Liberty Project
LAKEWOOD, COLORADO, September 3, 2020 – General Moly,
Inc. (the “Company”) (NYSE American and TSX: GMO), the
only western-exchange listed, pure-play molybdenum mineral
development company, today announced that on September 1, 2020, it
entered into a binding letter of intent with Pathfinder Minerals
LLC, a Nevada corporation (”Pathfinder”), for the sale
by the Company of Liberty Moly LLC and all assets owned by the
Company that constitute the Liberty Project. Pathfinder paid the
Company $1,000,000 in cash upon execution of the letter of intent.
Upon execution of a definitive Purchase Agreement and transfer of
title on or before September 15, 2020, Pathfinder will make an
additional payment of $1,000,000 to the Company. A further
$1,000,000 will be payable on completion of commissioning of a
production plant of any metal commodity on the property. The
Company will retain a 3% net smelter return royalty on molybdenum
production from the property.
Notwithstanding
this transaction, the Company still has a significant working
capital deficit and there remains substantial doubt about the
Company’s ability to continue as a going concern. If the
Company is unable to find an additional source of funding, it will
be forced to cease operations and pursue restructuring or
liquidation alternatives, including the filing for bankruptcy
protection, in which event the Company’s common stock would
likely become worthless and investors would likely lose their
entire investment in the Company. In addition, holders of the
Company's outstanding convertible preferred stock and senior notes
would likely receive significantly less than the principal amount
of their claims and possibly, no recovery at all. As of the date of
this news release, the Company has no commitments for additional
funding and there can be no assurance that the Company will be
successful in obtaining the financing required to complete the Mt.
Hope Project, or in raising additional financing in the future on
terms acceptable to the Company, or at all.
About General Moly
General
Moly is a U.S.-based, molybdenum mineral exploration and
development company listed on the NYSE American, recently known as
the NYSE MKT and former American Stock Exchange, and the Toronto
Stock Exchange under the symbol GMO. The Company’s primary
asset, an 80% interest in the Mt. Hope Project located in
central Nevada, is considered one of the world’s largest and
highest grade molybdenum deposits. General Moly’s goal is to
become the largest primary molybdenum producer in the
world.
Molybdenum
is a metallic element used primarily as an alloy agent in steel
manufacturing. When added to steel, molybdenum enhances steel
strength, resistance to corrosion and extreme temperature
performance. In the chemical and petrochemical industries,
molybdenum is used in catalysts, especially for cleaner burning
fuels by removing sulfur from liquid fuels, and in corrosion
inhibitors, high performance lubricants and polymers.
About Pathfinder
Pathfinder
is a private, junior exploration and development company based in
Reno.
Contact:
Scott
Roswell
(303)
928-8591
info@generalmoly.com
Website:
www.generalmoly.com
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Forward-Looking Statements
Statements
herein that are not historical facts are “forward-looking
statements” within the meaning of Section 27A of the
Securities Act, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended and are intended to be covered by
the safe harbor created by such sections. Such
forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected, or implied by the
Company. These risks and uncertainties include, but are not
limited to availability of cash to continue ongoing operations and
the possibility of seeking bankruptcy protection, that COVID-19 is
having and will continue to have an effect on financing efforts to
improve liquidity, availability of insurance, metals price and
production volatility, global economic conditions, currency
fluctuations, increased production costs and variances in ore grade
or recovery rates from those assumed in mining plans, exploration
risks and results, reclamation risks, political, operational and
project development risks, ability to maintain required federal and
state permits to continue construction, and commence production of
molybdenum, copper, silver, lead or zinc, ability to identify any
economic mineral reserves of copper, silver, lead or zinc; ability
of the Company to obtain approval of its joint venture partner at
the Mt. Hope Project in order to mine for molybdenum, copper,
silver, lead or zinc, ability to raise required project financing
or funding to pursue an exploration program related to potential
copper, silver lead or zinc deposits at Mt. Hope, ability to
respond to adverse governmental regulation and judicial outcomes,
and ability to maintain and /or adjust estimates related to cost of
production, capital, operating and exploration expenditures.
For a detailed discussion of risks and other factors that may
impact these forward looking statements, please refer to the Risk
Factors and other discussion contained in the Company's quarterly
and annual periodic reports on Forms 10-Q and 10-K, on file with
the SEC. The Company undertakes no obligation to update
forward-looking statements.
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